Insurance Frequent Asked Questions

Do Auto Insurance Companies Check Driving History?
Insurance companies will check your driving history but it won't prevent you from getting coverage. It does help a company decide on the risk when they issue you a policy, which may result in a higher premium.
Renters Insurance, who needs that?
Most renters never even give a second thought to renters insurance and if they do they naively assume the landlords insurance would cover their belongings in the event of a loss. Unfortunately, that is not the case because the landlords insurance only covers the structure, not the personal belongings of the tenants or even the liability within the unit itself.

Take a minute to consider the value of your furniture, television, stereo, computer, jewelry, clothes, and other items. They likely add up to more in value than your automobile. Also, consider the event where someone is injured in your rental unit due to your negligence and sues for damages. How do you insure that you are covered for these unfortunate mishaps?

That’s where renters insurance comes in.

Not only would your personal possessions be covered in the event of a loss, whether it be from: theft, vandalism, fire or lightning, hurricane or tornado, explosions, damage from smoke, damage by broken glass, and water-related damages from home utilities, but you would also be covered if someone were to sue you for negligence that was deemed unintentional. In today’s world, carrying coverage for a list such as these is not only smart but imperative.

All renters must realize that going without renter’s insurance means they would have to start from scratch in the event of a tragedy. In fact, it is becoming more common for landlords to require their tenants carry renters insurance. For as little as $12 per month, it is definitely smart to consider having renters insurance.

Question: Who has an insurable interest?
First off, let us start out by telling you what an insurable interest is. To have an insurable interest in the property means you must have a financial interest in the property that is to be covered.
The following are examples that all have an insurable interest:
  • The owner has an insurable interest in the owner’s belongings.
  • The tenant has an insurable interest in the tenant’s belongings.
  • The lender/mortgage/bank has an insurable interest if there is a lien on the property, but only has an insurable interest in the property up to the balance that is owed to them on the property.
  • An ex-owner who is carrying the financing on the property sold has an insurable interest.
  • A contractor building a structure has an insurable interest in the structure while it is being built.
Requiring an insurable interest in the property in order to have an insurance policy clearly protects the insurance companies. You cannot insure something that you do not have an insurable interest in.